REGISTERED NUMBER: 03488777 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements

for the Year Ended 28th February 2026

for

CTS (Shopfitting) Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

5

Report of the Independent Auditors

7

Statement of Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

16

DIRECTORS:

R F Middleton

W Flanagan

N Nicklin

M Clark

J E Middleton

T P Middleton

SECRETARY:

J E Middleton

REGISTERED OFFICE:

Princes House

Wright Street

Hull

HU2 8HX

REGISTERED NUMBER:

03488777 (England and Wales)

AUDITORS:

Sadofskys

Statutory Auditors

Princes House

Wright Street

Hull

East Yorkshire

HU2 8HX

BANKERS:

HSBC Bank plc

728 Holderness Road

Hull

HU9 3JX

SOLICITORS:

Hamers

5 Earls Court

Priory Park East

Hull

HU4 7DY

The directors present their strategic report for the year ended 28th February 2026.

REVIEW OF BUSINESS

The key performance indicators of turnover, turnover growth and net profit before taxation communicate the financial performance of the company as a whole.

The key performance indicators for the last three years are as follows:

2026

2025

2024

2023

£

£

£

£

Turnover

73,719,429

59,997,568

58,150,519

50,003,489

Turnover growth /(decline)

22.88%

3.18%

16.29%

13.39%

Gross profit margin

10.09%

9.38%

7.78%

8.61%

Profit before tax

1,659,946

1,185,606

1,413,555

1,435,925

Profit before tax margin

2.25%

1.97%

2.43%

2.87%

Net assets

2,688,473

2,376,779

2,315,374

2,281,783

Cash at bank

1,271,258

2,259,297

1,976,767

2,498,539

The year ended 28th February 2026 was one of strong growth. Turnover increased by 22.88% to £73.7m (2025: £60.0m), driven by CTS's continued strong performance diversification into new workstreams and roll outs with existing clients. Furthermore, we have developed new relationships with other large name clients in the last 12 months which have proven to be favourable partnerships. This has helped diversify the business's revenue channels and increase overall growth.

Gross profit increased to £7.4m (2025: £5.6m), and gross margin improved to 10.09% (2025: 9.38%). The improvement reflects the ongoing investment into continuous improvement and development of internal processes at tender and delivery stage within a favourable mix of projects. Ongoing resource investment with the view to bolstering our internal client teams has also contributed to this increase in growth.

Administrative expenses increased by 28.88% to £5.8m (2025: £4.5m). Reflecting an increase in employment costs and continued investment into the business supporting the higher level of activity throughout the year. Even though administrative expenses have increased, profit before taxation increased to £1.7m (2025: £1.2m), a margin of 2.25% (2025: 1.97%).

At the year end, net assets had increased by 12.5% to £2.7m (2025: £2.4m), after paying dividends of £879,200 (2025: £803,200).

Cash balances decreased to £1.3m (2025: £2.3m), reflecting the timing of working capital movements around the year end. The company continues to settle creditor balances in line with agreed terms, while a number of outstanding sales invoices were received shortly after the year end. The directors therefore consider the company's cash position to remain healthy.

The company invested £0.3m in vehicles, equipment and software during the year, part-financed by hire purchase.

The directors consider the results for the year to be very satisfactory. Looking ahead, they expect to maintain the current performance whilst continuing to invest in resource where appropriate to ensure client teams are sufficiently supported to deal with the current scale of the business and potential growth in the future if our clients demand it.

PRINCIPAL RISKS AND UNCERTAINTIES

The directors regularly review the principal risks facing the company and the actions taken to manage them. The principal risks and uncertainties are set out below.

Dependence on key clients and the retail sector

A significant proportion of the company's turnover comes from a number of major retail clients, and demand depends on their capital spending programmes. A reduction in spending by these clients, or a wider downturn in the retail sector, could affect turnover. The company manages this risk through long-standing client relationships, a strong record of delivery, and developing work in other sectors.

Contract pricing and delivery

Many projects are delivered through competitive tender or framework agreements, often at fixed prices and to tight programmes. Inaccurate estimating, unforeseen site conditions, design changes or delays could reduce margins or lead to disputes. The company manages this risk by:

- Carrying out detailed costing and review at tender stage;

- Managing variations under contractual procedures;

- Monitoring every project through regular cost value reconciliations;

- Having senior management review contracts at risk

- Peer review of cost submissions prior to the clients having visibility of CTS's proposals.

- Caveats detailing any exclusions and qualifications in line with the contractual agreements prior to acceptance of purchase orders.

Subcontractors and supply chain

First and foremost, CTS prides itself on having a substantial in house resource, whom are courteous and conscious of both the client and CTS's best interests. This reduces the risk compared to using 3rd party resources somewhat.

Contrary to the above, CTS does rely on subcontractors and suppliers to deliver specialist elements to deliver its projects. The failure of a key subcontractor, a shortage of skilled labour, or delays in the supply of materials could disrupt projects and increase costs. The company manages this risk by using an approved supplier list, carrying out financial and competence checks on subcontractors, keeping relationships with a wide supply base, and procuring long-lead items early.

Cost inflation

Increases in the cost of labour, materials and plant may not be fully recoverable under fixed-price contracts. The company manages this risk through short validity periods on tenders, early procurement, and price fluctuation clauses where they can be agreed.

Health, safety and regulatory compliance

As a principal contractor, the company is responsible for health and safety on its sites. A serious incident could cause harm to people, lead to regulatory action, and damage the company's reputation. The company also must comply with construction regulations. The company manages this risk through its award winning in-house health and safety team, formal policies and site inspections, training, and maintaining external accreditations.

People

The company's success depends on keeping and recruiting experienced project managers, site supervisors and commercial staff, and on the continued involvement of its senior management team. The company manages this risk through training and development, competitive remuneration, and succession planning, including the strengthening of the board during the year.

Financial risk management

Credit risk

The company's main credit risk relates to trade debtors and amounts recoverable on contracts, which are concentrated among a small number of large clients. The company manages this risk by carrying out credit checks before accepting work, agreeing payment terms at contract stage, submitting applications for payment regularly, and closely monitoring overdue balances. Historically, bad debts have been low.

Liquidity and cash flow risk

Cash flow depends on the timing of interim applications, client payments and retentions, and on payments to subcontractors and suppliers. The company manages this risk through regular cash flow forecasting and by keeping sufficient cash balances. It has no bank borrowings, and its only external finance is a small amount of hire purchase for motor vehicles.

Interest rate and foreign exchange risk

The company's hire purchase agreements are at fixed rates, and interest earned on cash balances is not material to the results. Almost all of the company's transactions are in sterling, so its exposure to foreign exchange risk is minimal. The directors therefore consider these risks to be low.

ON BEHALF OF THE BOARD:

R F Middleton - Director

14th October 2026

The directors present their report with the financial statements of the company for the year ended 28th February 2026.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of Shopfitters, Commercial, Retail & Construction fit out contractors.

DIVIDENDS

An interim dividend of £8792 per share was paid on 28th February 2026. The directors recommend that no final dividend be paid.

The total distribution of dividends for the year ended 28th February 2026 will be £ 879,200 .

FUTURE DEVELOPMENTS

Our clients continue to award projects of varying sizes to CTS across a number of workstreams. The current market remains relatively stable, with a consistent level of enquiries being received from both existing and new clients. The directors are therefore cautiously optimistic that this will continue to provide a healthy pipeline of opportunities during the forthcoming financial year.

The strengthening and restructuring of the management team across the company is beginning to deliver positive results. Clearer responsibilities improved operational oversight and greater accountability are helping the business to manage projects more effectively and maintain greater control over costs and performance.

Going forward, the directors intend to focus on maintaining a sustainable level of turnover while continuing to improve performance. Emphasis will be placed on project selection, cost control, operational efficiency and ensuring that resources are deployed effectively across the business.

The company will also continue to develop relationships with its existing client base while pursuing suitable opportunities with new clients. The directors believe that maintaining a balanced workload across the company's various workstreams will help to reduce reliance on individual projects or customers and provide greater stability going forward.

Overall, the directors consider the company to be well positioned for the forthcoming year, with an established client base, a continuing pipeline of enquiries and a strengthened management structure to support future growth.

DIRECTORS

The directors set out in the table below have held office during the whole of the period from 1st March 2025 to the date of this report unless otherwise stated.

The beneficial interests of the directors holding office at 28th February 2026 in the shares of the company, according to the register of directors' interests, were as follows:

1.3.25

or date of

appointment

28.2.26

if later

Ordinary shares of £1 each

R F Middleton

50

50

W Flanagan

50

50

N Nicklin

-

-

M Clark

-

-

J E Middleton

-

-

T P Middleton - appointed 12/2/26

-

-

These directors did not hold any non-beneficial interests in the shares of the company.

FINANCIAL INSTRUMENTS AND RISK MANAGEMENT

The company's principal financial instruments and risk management are disclosed in the strategic report which forms part of these financial statements.

REVENUE MAINTENANCE

The company actively markets and manages its portfolio of products to focus on the revenue building and maintenance which, over the life cycle of the products can contribute to the future profits of the business.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Sadofskys, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

R F Middleton - Director

14th October 2026

Opinion

We have audited the financial statements of CTS (Shopfitting) Limited (the 'company') for the year ended 28th February 2026 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the company's affairs as at 28th February 2026 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience shopfitting services industry;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;

- reading the minutes of meetings of those charged with governance;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators and the company's legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Alan Brocklehurst (Senior Statutory Auditor)

for and on behalf of Sadofskys

Statutory Auditors

Princes House

Wright Street

Hull

East Yorkshire

HU2 8HX

14th October 2026

TURNOVER

3

73,719,429

59,997,568

Cost of sales

66,287,058

54,384,801

GROSS PROFIT

7,432,371

5,612,767

Administrative expenses

5,836,330

4,459,515

1,596,041

1,153,252

Other operating income

4

52,295

18,015

OPERATING PROFIT

6

1,648,336

1,171,267

Interest receivable and similar income

15,143

14,751

1,663,479

1,186,018

Interest payable and similar expenses

7

3,533

412

PROFIT BEFORE TAXATION

1,659,946

1,185,606

Tax on profit

8

469,052

321,001

PROFIT FOR THE FINANCIAL YEAR

1,190,894

864,605

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

1,190,894

864,605

FIXED ASSETS

Intangible assets

10

16,900

-

Tangible assets

11

414,711

175,284

431,611

175,284

CURRENT ASSETS

Debtors

12

12,652,869

14,162,768

Cash at bank and in hand

1,271,258

2,259,297

13,924,127

16,422,065

CREDITORS

Amounts falling due within one year

13

11,428,311

14,189,357

NET CURRENT ASSETS

2,495,816

2,232,708

TOTAL ASSETS LESS CURRENT LIABILITIES

2,927,427

2,407,992

CREDITORS

Amounts falling due after more than one year

14

(144,664

)

-

PROVISIONS FOR LIABILITIES

17

(94,290

)

(31,213

)

NET ASSETS

2,688,473

2,376,779

CAPITAL AND RESERVES

Called up share capital

18

100

100

Retained earnings

2,688,373

2,376,679

SHAREHOLDERS' FUNDS

2,688,473

2,376,779

The financial statements were approved by the Board of Directors and authorised for issue on 14th October 2026 and were signed on its behalf by:

R F Middleton - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1st March 2024

100

2,315,274

2,315,374

Changes in equity

Dividends

-

(803,200

)

(803,200

)

Total comprehensive income

-

864,605

864,605

Balance at 28th February 2025

100

2,376,679

2,376,779

Changes in equity

Dividends

-

(879,200

)

(879,200

)

Total comprehensive income

-

1,190,894

1,190,894

Balance at 28th February 2026

100

2,688,373

2,688,473

Cash flows from operating activities

Cash generated from operations

1

487,771

1,647,418

Interest paid

-

(412

)

Interest element of hire purchase payments paid

(3,533

)

-

Tax paid

(586,235

)

(362,162

)

Net cash from operating activities

(101,997

)

1,284,844

Cash flows from investing activities

Purchase of intangible fixed assets

(19,500

)

-

Purchase of tangible fixed assets

(316,251

)

(69,115

)

Sale of tangible fixed assets

500

11,250

Interest received

15,143

14,751

Net cash from investing activities

(320,108

)

(43,114

)

Cash flows from financing activities

Hire purchase capital repayments in year

(13,150

)

-

Amount withdrawn by directors

116,000

(156,000

)

Hire purchase finance received

210,416

-

Equity dividends paid

(879,200

)

(803,200

)

Net cash from financing activities

(565,934

)

(959,200

)

(Decrease)/increase in cash and cash equivalents

(988,039

)

282,530

Cash and cash equivalents at beginning of year

2

2,259,297

1,976,767

Cash and cash equivalents at end of year

2

1,271,258

2,259,297

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2026

2025

£

£

Profit before taxation

1,659,946

1,185,606

Depreciation charges

70,966

34,239

Loss on disposal of fixed assets

7,958

6,063

Finance costs

3,533

412

Finance income

(15,143

)

(14,751

)

1,727,260

1,211,569

Decrease in trade and other debtors

1,509,899

74,065

(Decrease)/increase in trade and other creditors

(2,749,388

)

361,784

Cash generated from operations

487,771

1,647,418

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 28th February 2026

28/2/26

1/3/25

£

£

Cash and cash equivalents

1,271,258

2,259,297

Year ended 28th February 2025

28/2/25

1/3/24

£

£

Cash and cash equivalents

2,259,297

1,976,767

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1/3/25

Cash flow

At 28/2/26

£

£

£

Net cash

Cash at bank and in hand

2,259,297

(988,039

)

1,271,258

2,259,297

(988,039

)

1,271,258

Debt

Finance leases

-

(197,266

)

(197,266

)

-

(197,266

)

(197,266

)

Total

2,259,297

(1,185,305

)

1,073,992

1.	STATUTORY INFORMATION

CTS (Shopfitting) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Critical accounting judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements and estimates that affect the reported amounts of assets, liabilities, income and expenses. These are based on historical experience, current market information and forecasts of future activity, and are regularly reviewed and updated. Actual outcomes may differ from these estimates.

The areas that involve the most significant judgement and estimation are as follows:

Useful lives and residual values of assets

The useful economic lives and residual values of property, plant and equipment are reviewed annually. Judgement is required in estimating how long assets will remain in use and their likely residual value at the end of their life, with adjustments made if usage patterns or market conditions change.

Amounts recoverable on contracts

Revenue and profit recognition on contracts is based on the stage of completion and management’s assessment of recoverability. This involves forecasting turnover using client programmes of upcoming works, allocated projects and expected tenders, together with tracking project expenditure and profit through CVR documents and real-time monitoring. Judgement is required in estimating variations, resourcing needs, supply chain risks, and material/labour cost trends, all of which can affect the ultimate profitability of contracts.

Impairment and recoverability of receivables

The recoverability of receivables and contract balances is assessed using forward-looking estimates, including current client performance and market conditions. Judgement is applied in estimating expected credit losses.

Revenue recognition

Shopfitting Projects

Revenue from shopfitting projects is recognised in line with the progress of each contract and the transfer of goods or services to the customer. Recognition occurs at different stages throughout the lifespan of a project, typically categorised as: Pre-commencement, On-site delivery, and Post-completion.

Pre-commencement period

Revenue is recognised when we raise invoices against customer orders that require advance procurement of goods or services before the on-site start date. Revenue is recognised when control of those goods or services transfers to the client, which is generally when purchased materials are vested in the client’s name, or when pre-commencement services have been fully performed and the related deliverables/reports are issued.

On-site delivery period

During the construction and installation phase, revenue is recognised progressively based on applications for interim payment. The measure of progress is determined by the percentage of completion agreed with the client’s commercial team. The number and timing of applications vary depending on the client’s payment processes, project scope, and duration. Recognition continues on this stage-of-completion basis until practical completion.

Post-completion period

The final stage of revenue recognition occurs at practical completion, when the client issues a completion certificate confirming that the contracted works are substantially delivered. At this point, the outstanding contract value is recognised, subject to any retention provisions. Where retention amounts are withheld by the client (typically 5-10%), revenue in respect of these amounts is deferred and only recognised when the retention period expires, usually 6-12 months after project completion.

Decorating Projects

Revenue from decorating projects is recognised in accordance with the transfer of services to clients, typically in two stages: On-site delivery and Post-completion.

On-site delivery period

During the execution of decorating works, revenue is recognised progressively through interim applications for payment. These applications are based on the percentage of completion achieved on site and agreed with the client’s commercial team. The timing and frequency of interim applications vary depending on the client’s procedures and project duration, but the underlying principle is consistent with the shopfitting process: recognition reflects the stage of completion of the project up to the point of practical completion.

Post-completion period

The final revenue recognition stage occurs once practical completion has been certified and all snagging works are completed. In most cases, this results in full payment of the contract sum becoming due within 14 days of the practical completion date. Where contractual retentions apply (typically 5-10%), revenue relating to these amounts is deferred and only recognised upon expiry of the retention period, usually 6-12 months after project completion.

This approach ensures that revenue is recognised consistently with the transfer of control of goods and services to clients, reflecting the substance of each contract in accordance with applicable accounting standards.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Computer software is being amortised evenly over its estimated useful life of five years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Plant and machinery

-

20% on reducing balance

Fixtures and fittings

-

20% on reducing balance

Motor vehicles

-

25% on reducing balance

Computer equipment

-

20% on reducing balance

Financial instruments

The Company enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans from banks.

Debt instruments (other than those wholly repayable or receivable within one year), including loans and accounts receivables and payables, are initially measured at the transaction price (adjusted for transaction cost) and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangement constitutes a financing transaction, such as a trade debtor or creditor on extended credit terms, initial measurement is at the present value of future cash flows discounted at a market rate of interest. Subsequent measurement is at amortised cost.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If such evidence is identified, an impairment loss is recognised in the statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between the carrying amount and the present value of estimated cash flows discounted at te original effective interest rate. If the financial instrument has a variable interest rate the currently effective rate under the contract is used.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2026

2025

£

£

Construction

19,057,207

12,999,473

Internal refurbishment

47,139,897

42,198,289

Maintenance

4,011,906

1,799,927

Painting and decorating

3,510,419

2,999,879

73,719,429

59,997,568

4.	OTHER OPERATING INCOME

2026

2025

£

£

Grants received

39,795

12,993

Insurance claims

12,500

5,022

52,295

18,015

5.	EMPLOYEES AND DIRECTORS

2026

2025

£

£

Wages and salaries

7,192,095

6,033,175

Social security costs

905,080

670,794

Other pension costs

235,200

135,690

8,332,375

6,839,659